Portland Gas plc the gas storage project development company today announces the commencement of dealings in its shares on AIM following completion of the demerger from New Egdon (renamed Egdon Resources plc) which is also admitted to trading on AIM today.

Seymour Pierce Limited is the Nominated Adviser and Broker and NM Rothschild and Sons are financial advisors to Portland Gas.

Overview of Portland

Portland's business focuses on the development of gas storage projects in the United Kingdom and internationally. It currently has two projects in its portfolio, the first an advanced Project at the Isle of Portland which has been under development for over 3 years, and the second the Larne Lough project in Northern Ireland which was announced in July 2007.

The Isle of Portland project is seeking to develop a major gas storage facility, with the creation of 14 underground storage caverns totaling 1000 mcm (35 bcf) of natural gas - equating to 1% of the UK's annual demand.

Portland Gas has drilled and successfully appraised the salt sequence at Portland and is currently progressing through the planning, financing and tendering for construction processes. The planning application decision is expected to be made during the first quarter of 2008.

The Company is currently evaluating the potential of a Permian salt sequence in the Larne area of Northern Ireland to create salt gas storage caverns. The Company has commenced an Environmental Impact Assessment for the proposed project and has also acquired a 3D seismic programme during October and November 2007 to define the distribution and thickness of the salt within the area of interest. It is anticipated that the results of the seismic programme will be known later in the first quarter 2008.

Portland Gas plc will be led by Andrew Hindle as Chief Executive Officer with Craig Gouws (Chief Financial Officer), Walter Roberts (Legal and Commercial Director), Kenneth Ratcliff (Non-Executive Chairman), Mark Abbott (Non-Executive Director), and Maurice Hazzard (Non-Executive Director) comprising the Board.

Upon admission there will be 67,801,840 ordinary shares in issue.

Commenting on the listing of Portland Gas on AIM, Andrew Hindle, Chief Executive Officer of Portland said: 'Portland Gas has developed a significant presence in the UK energy industry over the past 3 years, and our strategy to develop the Portland project has led to significant shareholder value creation in this time.

'The Company is delighted to be admitted to AIM, following our demerger from Egdon, and we look forward to developing our portfolio of projects in the UK and internationally over the coming years in a sector that is rapidly becoming an important element of UK energy security.'

As a personal note, if the Isle of Portland project is given the go-ahead I wouldn't be surprised to see this rise by at least 50%.

There's a longish article (including these) in the FT today, you might find it of interest h123.

All very quiet here. An announcement due on 10th October or thereabouts. Apparently management is keeping qt, which probably means they are going to row their own boat rather than do the best thing for those of us who invested for the first stage i.e planning permission and then a sale of 50% to a joint venture partner.
Quote
"Seymour Pierce reiterated its 'buy' stance and NAV of 498p for shares in underground gas storage facility developer Portland Gas (PTG), saying that Centricas recent acquisition of the depleted Caythorpe gas field provides a good indication as to the current industry valuation of UK onshore gas storage projects: "this deal reinforces our view that Portland Gas is substantially undervalued." The broker's NAV of 350 million pounds (498p per share) is derived from a DCF (discounted cash flow) analysis of the Isle of Portland project, which values the asset at 340 million pounds, and the company's net cash pile of 10 million pounds. "We anticipate further positive news in the near term and expect that the current discount to our NAV will progressively unwind," it added. Portland Gas shares finished 17p ahead at 253p."

Any views?

No views at present. Shares Mag seems downbeat on PTG at present but I'm waiting until 10th October to get a clearer view.

Are we sure it's the 10th, I think they said around the 10th, so maybe tomorrow.

Anyone got a view on this company? Andrew Hindle appears to have it all wrong. Where is the funding in the current market and at what price for a small bunch of entrepreneurs with nothing to add apart from planning permission. Surely the project should be sold lock stock and barrel to a major in the sector who can fund it over time from internal resources.This would give current shareholders the best return with future upside from other projects in early stages eg Larne.The problem with small timers trying to be big timers is ego, and I think AH has it in spades. IMHO.

Very interesting sector and some very uninteresting Companies in it...including this one IMHO.

19 Dec08, - RNS - - just what has this Director bought?
Some clarity would give the impression this company might be going places.
-As it is, the sp did touch 4 and is now a member of the 90% club, in a few months.....and with the current squeeze on cash, unlikely to get funding for any further improvement . . . . 20p soon?
-OR- Better to sell-out......but not to Elgon - they've sunk without a whimper, er IMHO.